When is Community Solar Coming to Ontario?
Rising electricity costs and growing sustainability targets are pushing Ontario businesses and communities to rethink how they use energy. While solar power is a well-known source of renewable power, many businesses and communities lack suitable roof space, or cannot invest the upfront cost of a full solar system.
That’s where community solar comes in. Community solar functions off a shared solar power system. Instead of families, municipalities, and businesses putting solar panels on their own roof or land, they instead sign up to receive power from a larger solar project located locally. However, a community solar program has yet to be implemented by the Ontario government.
This article will explore the recent Community Solar Program that was implemented in Nova Scotia, and whether Ontario will adopt a similar community solar strategy in the future.
Case Study: Nova Scotia’s Community Solar Program
For a clear example of how community solar can work at scale, let’s take a look at Nova Scotia’s Community Solar Program, which officially started in October of 2025.
Nova Scotia’s Community Solar Program allows community groups and local organizations to apply to become project owners and build community solar gardens. Project owners can then sell subscriptions to households and businesses, allowing them to benefit from lower electricity costs for some or all of their monthly energy use.
Once operational, the utility tracks the solar energy generated each month. That energy is then divided among subscribers based on their share of the project.
Subscribers can accurately forecast their long-term savings since the value assigned to each unit of electricity remains fixed for the duration of the subscription. Subscribers will still receive a normal electricity bill from Nova Scotia Power, however they receive a solar energy credit to reduce the total cost of their bill. For businesses, this makes budgeting and sustainability planning much easier, while also reducing overall energy costs.
Nova Scotia manages the program by outlining specific rules and criteria and requiring project owners to be approved before they are allowed to connect to the grid and offer credits.
Potential Benefits of Community Solar for Ontario Businesses
If a similar program were introduced in Ontario, it would offer several advantages to the local business community.
Solar Energy is More Accessible
Despite becoming more affordable in recent years, the intensive planning, requirements, and high upfront costs have always been a barrier in solar power adoption. This is especially relevant to small- to medium-sized businesses in Ontario. As of now, Ontario businesses looking to adopt solar without high upfront costs are best to look at Power Purchasing Agreements (PPA’s).
Community solar removes these barriers by offering access to solar energy without ownership. Subscribers don’t incur the upfront cost of the solar installation and don’t have to be involved in planning or management. Moreover, community solar allows businesses to adopt solar even when on-site solar solutions aren’t possible.
For many businesses in Ontario, community solar would create an accessible first step toward measurable sustainability leadership.
No Equipment or Maintenance
Community solar subscribers are not responsible for system performance, repairs, or insurance. Businesses can operate on clean energy without having to be involved with ongoing maintenance and management of the solar system, greatly reducing the financial risk.
Lower Electricity Costs
While savings vary by program, community solar can help offset rising electricity prices by reducing dependence on Ontario's leading power source, nuclear. Over time, solar can provide a consistent reduction in electricity costs, while the consistent pricing also helps budgeting become simpler.
Limitations of Community Solar
While community solar improves accessibility, it does have some limitations.
The savings available from subscribing to a community solar program are very limited compared to owning solar. Businesses that own on-site solar panels benefit more from lower energy bills, and are also eligible for public incentives, tax rebates, and programs that reduce solar project costs significantly. This means that while project owners are eligible for many tax incentives and benefits, they don’t necessarily get passed down to subscribers.
You’d also be relying on the developer and utility to manage everything properly. Subscribers have no control over system performance, maintenance, or upgrades.
What Would Ontario Need for Community Solar to Work?
In order for the community solar program to come to Ontario, it would need:
Policy and Regulatory Support: A clear provincial policy would be required to define how community solar projects are approved, connected, and credited. This would require governmental support for community solar.
Utility Participation: Utilities would need standardized systems to track generation and apply bill credits.
Interest and Demand: Community solar depends on local participation to work. Businesses, communities, and homeowners need to demonstrate interest.
Alternatives to Community Solar in Ontario
Until a provincial community solar program exists, Ontario businesses still have other off-site options that can make solar energy more accessible.
Power Purchase Agreements (PPAs)
A Power Purchase Agreement (PPA) is a long-term contract where a business agrees to buy electricity from a solar provider, such as VCT Group, at a contracted rate. Like with community solar, businesses don’t own the system but benefit from steady, predictable energy costs over time while still working towards ESG goals
Learn more about PPAs and how they work in our blog: What is a Solar Power Purchase Agreement, and How Does It Help Ontario Businesses Innovate?
Ontario Community Solar Program Timeline
You may be wondering when Ontario will be implementing its own community solar program. Is it coming any time soon?
The short answer is that there’s no clear timeline on when, or if, community solar will be implemented in Ontario. What we do know is that Ontario Premier Doug Ford’s long-term energy plan depends on nuclear power and fossil fuels, rather than solar. However, environmental advocates and energy experts are criticizing this move and continuing to advocate for clean energy solutions like solar instead.
Nova’s Scotia Community Solar Program is also popular, with around 29 residential and commercial subscribers for the program’s first community solar garden in 2025. This doesn’t include subscribers from any other community solar gardens that have been built since then.
While Ontario’s FIT (Feed‑In Tariff) and microFIT programs are no longer available, they were very popular programs that saw great success in increasing solar installations in Ontario. According to this academic paper, The FIT and microFIT programs were involved in 55-64% of the province’s installed solar capacity in 2022.
In conclusion, while there’s no clear timeline for community solar in Ontario at the moment, these statistics show that there is certainly a demand for more accessible solar energy options. Ontario may follow Nova Scotia’s lead in the future, but for now, we can only wait and see.
VCT Group Offers Solar Systems to Fit Your Community’s Energy Needs
At VCT Group, we help communities and businesses transition to solar energy, from early planning through project completion. We design solar arrays tailored to meet your energy goals. Contact us today to book a free site assessment, or learn how we can help make your solar project simple, affordable, and sustainable.